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Labour was 'lucky' with Northern Rock gamble using taxpayer billions - The In...
17 May 2012 at 5:03pm

BBC News
Labour was 'lucky' with Northern Rock gamble using taxpayer billions
The Independent
The last Labour government took a blind leap into the unknown with taxpayers' money when it split Northern Rock into a "good bank" and a "bad bank" and the Treasury must never again make such careless decisions, MPs were told yesterday.
Taxpayers left with £2bn Northern Rock billFT Adviser
Taxpayers may lose 2 billion pounds on Northern Rock rescue - NAOReuters UK
Northern Rock: Taxpayers May Lose £2bn Says Report From National Audit OfficeSky News
Telegraph.co.uk -Financial Times
all 78 news articles »
Thieves steal memorial to IRA victims - U.TV
18 May 2012 at 10:04am

U.TV
Thieves steal memorial to IRA victims
U.TV
Suspected metal thieves have stolen a memorial to two children killed in an IRA bomb blast in Warrington, England in 1993. It is thought the plaque, which formed part of the River of Life memorial for victims of the attack, was taken by people hoping ...
Reward offered for Warrington IRA bomb victims' plaqueClick Liverpool
Children's memorial theft condemnedThe Press Association
Thieves Steal Plaque For Boys Killed By IRASky News
Scottish Daily Record -Crimestoppers UK -BBC News
all 254 news articles »
Murder victim's family sues PSNI over body part retention - BBC News
18 May 2012 at 10:15am

Belfast Telegraph
Murder victim's family sues PSNI over body part retention
BBC News
The partner of a murdered man whose body parts were retained by police for 19 years has begun legal action. Anthony Butler was murdered by the loyalist UFF in south Belfast in 1993. Police apologised on Wednesday for distress caused to families after ...
Gun victim's skull held by policeThe Press Association
Legal action after police kept skullU.TV
Police kept murder victim's skullBelfast Telegraph
RTE.ie -Irish Examiner
all 42 news articles »
Queen's Diamond Jubilee: How the monarchy got its mojo back - Telegraph.co.uk
18 May 2012 at 10:28am

Telegraph.co.uk
Queen's Diamond Jubilee: How the monarchy got its mojo back
Telegraph.co.uk
Not so long ago, the Royal family could do no right. Now we're in love with them all over again. By Tanya Gold Once Upon a Time ? well, in 2011, actually ? a book called Knit Your Own Royal Wedding sold lots of copies.
'Despot' lunches with the QueenHerald Sun
Queen's head carved on coffee bean for Diamond JubileeBBC News
Bahrain king attends Diamond Jubilee lunchAFP
Scotsman -WalesOnline
all 2,450 news articles »
Residents evacuated after bomb squad called to property in town - stv.tv
18 May 2012 at 9:16am

Brechin Advertiser
Residents evacuated after bomb squad called to property in town
stv.tv
By Danny Law 18 May 2012 15:52 BST Bomb disposal experts have been called to a property in a fishing town in Aberdeenshire. A member of the public raised the alarm on Friday afternoon and police are currently evacuating residents from the Low Shore ...
Alert sees town streets clearedThe Press Association
Streets in Banff evacuated over 'materials' as bomb squad called inBBC News

all 57 news articles »
Share cookies compliance expertise says ICO - The Guardian
18 May 2012 at 9:51am

ComputerActive.co.uk
Share cookies compliance expertise says ICO
The Guardian
The Information Commissioner's Office (ICO) wants public sector bodies that have made their websites comply with EU cookie regulations to share their knowledge with others. "We are seeing elements of good practice and what we hope is that, ...
Privacy watchdog to chase big companies over cookie lawZDNet UK
Cookies: Majority of government sites to miss deadlineBBC News
Will UK.gov crack down on itself for missing Cookie Law deadline?Register
IT PRO -Travolution -ITProPortal
all 29 news articles »
British citizen arrested in Thailand on suspicion of smuggling babies' corpse...
18 May 2012 at 10:08am

The Guardian
British citizen arrested in Thailand on suspicion of smuggling babies' corpses
The Guardian
A British citizen has been arrested in Bangkok on suspicion of smuggling human infant corpses for use in black magic rituals after the bodies of six babies were found in a suitcase in a hotel room, Thai police have said. Chow Hok Kuen, 28, ...
British citizen arrested in Bangkok with six foetusesMetro
fetuses found stashed in luggageCNN
Briton arrested with roasted human foetuses for use in black magic ritualTelegraph.co.uk
BBC News -The Independent
all 138 news articles »
Sky News referred to CPS and attorney general after naming rape victim - The ...
18 May 2012 at 6:40am

BBC News
Sky News referred to CPS and attorney general after naming rape victim
The Guardian
North Wales police have referred Sky News to the Crown Prosecution Service and the attorney general's office following the accidental broadcast of a rape victim's name. Officers from North Wales police on Thursday questioned four staff at Sky News' ...
Ched Evans rape case: Police at Sky over victim namingBBC News
Police called in after Sky names teenager in Ched Evans rape caseYorkshire Post
Sky News referred to CPS over naming rape victimDigital Spy UK
The Star -ITV News
all 20 news articles »
Well Diamond Jubilee Celebrations Competition - Wells People
16 May 2012 at 10:29am

Well Diamond Jubilee Celebrations Competition
Wells People
By Wells_Jaqui | Wednesday, May 16, 2012, 17:18 Wells People is delighted to announce a very special competition for any up and coming writers or photographers in our community. Are you up for the Diamond Jubilee challenge?

and more »
Fact File: Gay Marriage - The Independent
18 May 2012 at 8:48am

Barnet Press
Fact File: Gay Marriage
The Independent
When Prime Minister David Cameron, an erstwhile supporter of Section 28, backed gay marriage at the 2011 Tory party conference, it seemed the reform which began with the Civil Partnership Act 2004 would soon be complete. By the time the Government's ...
Hendon representative Matthew Offord expressed his belief that same sex ...Times Series
MP criticised over "offensive" gay marriage commentsBarnet Press
Amendment One denies civil rights to gay service membersJefferson Post
PinkNews.co.uk -Gay Star News -The Guardian
all 30 news articles »
 

Business News
Business News continually updated from thousands of sources around the net.

NAI Realvest Negotiates Two New Office Lease Agreements in Lake Mary and Mait...
18 May 2012 at 8:18am

MAITLAND, Fla. --- NAI Realvest recently negotiated two new lease agreements in Lake Mary and Maitland totaling 2,124 square feet of Class A office space.

Senior Broker Associate Mary Frances West, CCIM represented the tenant RPO Management LLC in the lease of 1,002 square feet at Lucien Green, 2250 Lucien Way, Suite 270 in Maitland. Natany Bramingham, Inc. of Warrington, Pa., is the landlord and was represented by Nathan Eissler of Realty Capital.

In Lake Mary, West represented the landlord, Interchange-Primera II, LLC of Daytona Beach in a lease agreement with Stewart Title Company for suite 105 with 1,122 square feet in Primera Court II at 735 Primera Blvd. The new tenant, who was represented by Nan McCormick of CBRE, is relocating from Altamonte Springs.

The 31,840 square foot Primera Court II is currently 96 percent leased.

About NAI Realvest NAI Realvest, serving all of Central Florida, is a fully integrated commercial real estate operating company specializing in brokerage, development, investment, leasing and management, consulting and research services in the U.S. and worldwide. NAI Global is an international commercial real estate network with over 350 offices spanning the globe. Since 1978, clients have built businesses on the power of NAI Global's expanding network. Extensive services include multi-site acquisitions and dispositions, sublease, tenant representation, lease administration and audit, investment services, due diligence and related consulting and advisory services. To learn more, visit www.NAIRealvest.com.

Park Square Homes Opens New Phase of Townhomes Priced from the $120s at Prair...
18 May 2012 at 7:53am

ORLANDO, Fla. - Park Square Homes has opened a new phase with townhomes priced from the $120s at Prairie Lake Reserve, located off A.D. Mims Road and Clarke Road in Ocoee.

Vishaal Gupta, president and chief operating officer at Park Square Homes, said the new phase will include 60 new three and four bedroom townhomes that range in size from 1,600 square feet of living space to 1,800 square feet.

A gated community, Prairie Lake Reserve features a community swimming pool, clubhouse and children's playground.

Visit www.parksquarehomes.com

About Park Square Homes Park Square Homes is one of Central Florida's premier production and vacation homebuilders. Founded in Orlando in 1984, the company has constructed thousands of homes in Orange, Osceola, and Seminole Counties. Park Square Homes is ranked as one of the largest homebuilders in Central Florida and is considered a pioneer and innovator in Florida's resort home market.

Facebook begins trading this morning
18 May 2012 at 7:48am

Facebook is about to find out just how much status updates, puppy photos and billions of "likes" are worth on Wall Street.

Lennar's Central Florida Division releases 60 single family villa homes, 60 t...
18 May 2012 at 7:34am

TAMPA, Fla. --- Lennar's Central Florida Division has released 60 single family villa homes and 60 town homes for sale at Hawks Point, located on Oak Pond Street in Ruskin, off 19th Avenue, west of U.S. 301 in the SouthShore area of Hillsborough County.

Mark Metheny, president of Lennar's Central Florida Division, said two and three bedroom single family villa homes at Hawk's Point range in size from 1,400 square feet of living space to 1,517 square feet with one car garages, priced from $129,990.

Metheny said 60 town homes at Hawk's Point priced from the $130s range in size from 1,747 square feet of living space to 2,162 square feet. Three floor plans are available.

Germany's Schaeuble: crisis may last for 2 years
18 May 2012 at 5:48am

Wolfgang Schaeuble also says it's vital that during this weekend's summit in Washington Europe's leaders show the world they are moving more quickly to stem the crisis that is jeopardizing economic recovery around the world.

Spain stocks extend losing streak after downgrade
18 May 2012 at 5:48am

Spain's stock market flirted with seven-year lows Friday as investors continued to worry about the stability of the eurozone's financial system in light of the downgrading by credit ratings agency Moody's of the country's banking industry.

Vietnam arrests 4 shipping execs in scandal
18 May 2012 at 5:48am

Online VnExpress says Duong Chi Dung, former chairman of Vietnam National Shipping Lines, or Vinalines, and three other executives were detained Friday for allegedly causing losses of $80 million from 2009-2010 after purchasing old ships and making poor investments.

Mary Richardson Kennedy's death amplifies turmoil
18 May 2012 at 3:48am

Bedford, N.Y. -- Every family has its share of pain and triumph. And then there are the Kennedys.

BSkyB Buys Back 0.46 Million Shares/Average 691.05P
18 May 2012 at 3:48am

British Sky Broadcasting Group PLC said Friday that on May 17 it purchased 460,000 of its ordinary shares for cancellation at an average price of 691.0500 pence per share.

Japan launches rocket with first foreign satellite
17 May 2012 at 11:38pm

A rocket has lifted off in Japan in the country's first commercial launch of a foreign satellite - one from South Korea designed to monitor the environment.

Good Government Spending: Myth Busted
17 May 2012 at 7:29pm

He's pushing back against Republicans who are calling for immediate budget cuts and long-term reform for social security and Medicare.

Congress Killed Expatriate Tax Once Before in 1995
17 May 2012 at 6:29pm

NEW YORK -- Sen. Chuck Schumer and Sen. Bob Casey announced plans Thursday to unveil their proposed "Ex-PATRIOT" or "Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy" legislation seeking to re-impose taxes on ex-citizens. Back in 1995, President Bill Clinton spoke on multiple occasions about this topic and the ... (more)

Chevrolet to debut rear-wheel-drive SS next year
17 May 2012 at 3:24pm

For the first time in nearly two decades, the Chevrolet brand will have a big, rear-wheel-drive sedan in its U.S. lineup.

Facebook Said to Price IPO at $38 Per Share
17 May 2012 at 1:19pm

Facebook would raise $18.4 billion from the offering, making it the second largest IPO in U.S. history, behind Visa Facebook recently raised both the per-share price and size of its offering, in response to heavy demand for the stock.

Mexican Bribery Gave Me A Chance To Make Money In Wal-Mart
17 May 2012 at 11:15am

This morning Wal-Mart reported blowout earnings. As of this writing, Wal-Mart stock is up $3.20, or 5.4%, even though the overall market is down.

 

BBC News - Business
The latest stories from the Business section of the BBC News web site.


Facebook shares spike on debut
18 May 2012 at 10:50am
Facebook shares are trading flat at $38 on their stock market debut, having initially jumped to $42 within minutes of trade beginning.

Market jitters over eurozone woes
18 May 2012 at 10:56am
European markets suffer a nervous session with investors unsettled by a downgrade for Spanish banks and the political crisis in Greece.

Yahoo jumps on Alibaba deal talk
18 May 2012 at 10:35am
Shares in internet giant Yahoo rise 5% on reports that it is close to selling its valuable stake in Alibaba Group, the Chinese e-commerce company.

N Rock rescue 'could cost £2bn'
17 May 2012 at 5:00pm
The taxpayer could lose about £2bn once the assets of collapsed bank Northern Rock are wound down, the National Audit Office estimates.

UK in £50m pork deal with China
18 May 2012 at 3:56am
The UK agrees a £50m trade deal to sell pork to China, the world's biggest market for pig meat, where parts such as offal and trotters are more popular.

JP Morgan boss to testify in US
18 May 2012 at 7:01am
JP Morgan chairman and chief executive Jamie Dimon will appear before a Senate committee to explain the bank's $2bn trading loss on a failed hedging strategy.

HMRC defends child benefit plan
17 May 2012 at 5:00pm
Asking people to reveal financial information to their partners is legal, HM Revenue & Customs says, despite claims it breaks confidentiality rules.

LSE reveals strong profits rise
18 May 2012 at 10:11am
The London Stock Exchange bucks the economic turmoil to deliver a better-than-expected rise in annual profit.

Rain dampens sales at pub group
18 May 2012 at 1:35am
Pubs group Mitchells & Butlers reports a sharp slowdown in sales, saying the recent wet weather has led to fewer customers.

EU 'plans for Greek exit option'
18 May 2012 at 7:34am
The EU Commission and European Central Bank are making contingency plans for a possible Greek exit from the euro, an EU commissioner says.

Stagecoach in £100m US expansion
18 May 2012 at 3:08am
Perth transport group Stagecoach is to buy parts of a US bus firm for about £100m, helping it expand its operations.

Moody's downgrades Spanish banks
17 May 2012 at 4:12pm
Ratings agency Moody's cuts the credit ratings of 16 Spanish banks, as shares in struggling lender Bankia fell another 14%.

Private rents 'increasing again'
17 May 2012 at 5:00pm
Private rents in England and Wales went up by 0.5% in April, according to letting agency group LSL Property Services.

China property prices fall again
18 May 2012 at 1:19am
Chinese property prices continued to fall during April after the government kept policies in place to curb speculation.

US puts tariffs on Chinese panels
17 May 2012 at 7:18pm
The US says it will impose import tariffs of about 30% on Chinese solar companies, saying China is flooding it with subsidised products.
 

Financial Services company and industry news from the Financial Times
The financial services company and industry news with expert analysis from the Financial Times on FT.com

London loses financial jobs to regions
17 May 2012 at 1:13pm
Edinburgh, Manchester and other regional cities help companies take advantage of lower costs, report shows
Buffett on list of Gupta trial witnesses
17 May 2012 at 5:59pm
Lloyd Blankfein, Kenneth Chenault, Meg Whitman, Meredith Whitney and Deepak Chopra among the other leading names on lists submitted ahead of the insider trading trial
Ex-UKFI chief Cooksey joins hedge fund
17 May 2012 at 5:10pm
Sir David will sit on advisory board of Strategic Value Partners, which manages $4bn of assets and focuses on acquiring struggling companies? debts
Facebook valued at $104bn in IPO
17 May 2012 at 2:37pm
Social media website will vault into the ranks of top 25 most valuable public companies in the US after pricing its offering at the top of the range
Pimco experiment beats flagship fund
17 May 2012 at 12:59pm
Total Return ETF is up 4.8% since it launched March 1, with reinvested dividends, while the Total Return Mutual Fund has returned just 1.9%
NY Fed postpones $1.7bn CDO sale
17 May 2012 at 11:17am
Maiden Lane sale delayed to allow market time to digest ?new information? about the deals, which involve securities relating to AIG bailout
Concern at BlackRock role in Spain review
17 May 2012 at 10:25am
Fund manager?s consultancy arm has been given the task of valuing Spanish banking assets, leading to disquiet about a potential conflict of interest
Working in Africa: Expatriates in little danger of seeing the money run out
17 May 2012 at 3:51am
But they might find they are not as well ?looked after? as they have been in the past
Working in Africa: Backing businesses to deliver change
17 May 2012 at 3:50am
Interview: Dina Medland meets Rod Evison, a regular visitor to the continent who is building a large investment portfolio
Cassina leaves Citadel Execution Services
17 May 2012 at 3:48am
Matteo Cassina leaves as president of Citadel Execution Services Europe, trading arm of the US fund manager, having helped oversee group?s push into European trading
New 3i chief pledges shareholder payouts
17 May 2012 at 1:47am
Simon Borrows unveils scheme earmarking up to 20% of the proceeds of companies sold to investors and says there are no plans for a sale of the group
FSA searches for new enforcement chief
16 May 2012 at 7:38pm
The financial watchdog is casting its net across three continents and has asked headhunters to help find a replacement for Margaret Cole
Hedge funds veer from Marx to Munch
16 May 2012 at 6:11pm
The one day Sohn Investment Conference built around presentations from high profile investors went from naked promotion of share portfolios and Marx to Munch?s ?Scream?
FSA pursues ban on former BGC executive
16 May 2012 at 4:52pm
A civil court ruled that Anthony Verrier led an unlawful poaching conspiracy against a rival interdealer broker and did not tell the truth about it
ICAP in talks to buy Plus Markets
16 May 2012 at 4:17pm
Broker in discussions with the FSA and the UK exchange?s board over a deal that would preserve the quotations of the 156 groups traded on the market
 

Sky News | Business | First For Breaking News
The latest business news on British and international companies, stocks and shares news, the FTSE, Dow Jones and main market movers. What???s up and what???s down in business.

Facebook Floats: Share Trading Begins In US
Trading in Facebook shares has begun on the Nasdaq in New York, in one of the most hotly-anticipated US stock market flotations.
Euro Crisis: Markets Tumble After Downgrades
World stock markets have suffered further steep falls in volatile trading as a result of the eurozone debt crisis after downgrades in the credit ratings of Greece and 16 Spanish banks.
Greek Voters Move To Centre Amid Downgrade
Greece's credit rating has been downgraded due to the "heightened risk" that the political and economic crisis could drag the country out of the euro.
Cameron Takes Eurozone Demands To US Summit
David Cameron is set to step up his demands for action to tackle the eurozone crisis as he heads to the United States for a two-summit weekend with world leaders.
Northern Rock Rescue 'Costs Taxpayer £2bn'
The rescue of the collapsed bank Northern Rock is likely to cost the taxpayer at least £2bn, a report has revealed.
 

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Loonie and Aussie Share Downward Bond
by Adam Kritzer
30 Jun 2011 at 9:15am

In yesterday’s post (Tide is Turning for the Aussie), I explained how a prevailing sense of uncertainty in the markets has manifested itself in the form of a declining Australian Dollar. With today’s post, I’d like to carry that argument forward to the Canadian Dollar.

As it turns out, the forex markets are currently treating the Loonie and the Aussie as inseparable. According to Mataf.net, the AUD/USD and CAD/USD are trading with a 92.5% correlation, the second highest in forex (behind only the CHFUSD and AUDUSD). The fact that the two have been numerically correlated (see chart below) for the better part of 2011 can also be discerned with a cursory glance at the charts above.

Why is this the case? As it turns out, there are a handful of reasons. First of all, both have earned the dubious characterization of “commodity currency,” which basically means that a rise in commodity prices is matched by a proportionate appreciation in the Aussie and Loonie, relative to the US dollar. You can see from the chart above that the year-long commodities boom and sudden drop corresponded with similar movement in commodity currencies. Likewise, yesterday’s rally coincided with the biggest one-day rise in the Canadian Dollar in the year-to-date.

Beyond this, both currencies are seen as attractive proxies for risk. Even though the chaos in the eurozone has very little actual connection to the Loonie and Aussie (which are fiscally sound, geographically distinct, and economically insulated from the crisis), the two currencies have recently taken their cues from political developments in Greece, of all things. Given the heightened sensitivity to risk that has arisen both from the sovereign debt crisis and global economic slowdown, it’s no surprise that investors have responded cautiously by unwinding bets on the Canadian dollar.

Finally, the Bank of Canada is in a very similar position to the Reserve Bank of Australia (RBA). Both central banks embarked on a cycle of monetary tightening in 2010, only to suspend rate hikes in 2011, due to uncertainty over near-term growth prospects. While GDP growth has indeed moderated in both countries, price inflation has not. In fact, the most recent reading of Canadian CPI was 3.7%, which is well above the BOC’s comfort zone. Further complicating the picture is the fact that the Loonie is near a record high, and the BOC remains wary of further stoking the fires of appreciation by making it more attractive to carry traders.

In the near-term, then, the prospects for further appreciation are not good. The currency’s rise was so solid in 2009-2010 that it now seems the forex markets may have gotten ahead of themselves. A pullback towards parity – and beyond – seems like the only realistic possibility. If/when the global economy stabilizes, central banks resume heightening, and risk appetite increases, you can be sure that the Loonie (and the Aussie) will pick up where they left off.

Tide is Turning for the Aussie
by Adam Kritzer
29 Jun 2011 at 10:40am

“Australia is about to enter a boom that should last decades…The Australian dollar is unlikely to go back to where it was, and manufacturing will shrink in importance to the economy, perhaps even faster than it has been.” This, according to Martin Parkinson, Treasury Minister of Australia. While 30 years from now, Mr. Parkinson’s prognosis might probe to be accurate, I’m not so sure it applies to the period 3 months from now. Here’s why:

First of all, the putative economic boom that is taking place in Australia is being driven entirely by high commodity prices and surging production and exports. Since peaking at the end of April, commodity prices have fallen mightily. You can see from the chart above that there continues to exist a tight correlation between the AUD/USD and commodities prices. As commodities prices have fallen over the last two months, so has the Australian Dollar.

In addition, while demand will probably remain strong over the long-term, it may very well slacken over the short-term, due to declining economic growth across the industrialized world.  Consider also that Australia’s largest market for commodity exports – China – may have difficulty sustaining a GDP growth rate of 10%, and at the very least, new fixed-asset investment (which necessitates demand for raw materials) will temporarily peak in the immediate future.

Finally, the mining sector directly accounts for only 8% of Australia’s economy, which means that only to a limited extent to high commodities prices contribute to the bottom line of Australian GDP. This notion is reinforced by the 1.2% economic contraction in the second quarter – the biggest decline in 20 years – and the fact that GDP is basically flat over the last three quarters. Many non-mining economic indicators are sagging, and the number of corporate bankruptcies is 10% higher than in 2010. In the end, then, the ebb and flow of Australia’s fortune depends less on commodities, and more on other sectors.

Mr. Parkinson’s optimistic forecasts might also be undermined in the short-term by a looser-than-expected monetary policy. The Reserve Bank of Australia last hiked its benchmark interest rate in November 2010, and may not hike again for a few more months due to moderating economic growth and proportionally moderate inflation. Given that an attractive interest rate differential may be driving some of the speculative activity that has girded the Aussie’s rise, a decline in this differential could likewise propel it downward.

That’s because anecdotal reports suggest that the Australian Dollar remains a popular long currency for carry traders, funded by shorting the US Dollar, and to a lesser extent, Japanese Yen. Given that many of these carry trades are heavily leveraged, it wouldn’t take much to trigger a short squeeze and a rapid decline in the AUD/USD. For evidence of this phenomenon, one has to look no further back than May 2010, when the Aussie fell 10-15% in only three weeks.

Ultimately, as one commentator recently pointed out, the Aussie’s 70% rise since 2008 might better be seen as US Dollar weakness (which also catalyzed the rise in commodity prices). The apparent stabilizing of the dollar, then, might let some air out of the currency down under.

Emerging Market Currencies Brace for Correction
by Adam Kritzer
28 Jun 2011 at 2:42am

“It was the spring of hope, it was the winter of despair,” begins Charles Dickens’ The Tale of Two Cities. In 2011, the winter of despair was followed by the spring of uncertainty. Due to the earthquake/tsunami in Japan, the continued tribulations of Greece, rising commodity prices, and growing concern over the global economic recovery, volatility in the forex markets has risen, and investors are unclear as to how to proceed. For now at least, they are responding by dumping emerging market currencies.

As you can see from the chart above (which shows a cross-section of emerging market forex), most currencies peaked in the beginning of May and have since sold-off significantly. If not for the rally that started off the year, all emerging market currencies would probably be down for the year-to-date, and in fact many of them are anyway. Still, the returns for even the top performers are much less spectacular than in 2009 and 2010. Similarly, the MSCI Emerging Markets Stock Index is down 3.5% in the YTD, and the JP Morgan Emerging Market Bond Index (EMBI+) has risen 4.5% (which is reflects declining growth forecasts as much as perceptions of increasing creditworthiness).

There are a couple of factors that are driving this ebbing of sentiment. First of all, risk appetite is waning. Over the last couple months, every flareup in the eurozone debt crisis coincided with a sell-off in emerging markets. According to the Wall Street Journal, “Central and eastern European currencies that are seen as being most vulnerable to financial turmoil in the euro zone have underperformed.” Economies further afield, such as Turkey and Russia, have also experienced weakness in their respective currencies. Some analysts believe that because emerging economies are generally more fiscally sound than their fundamental counterparts, that they are inherently less risky. Unfortunately, while this proposition makes theoretical sense, you can be assured that a default by a member of the eurozone will trigger a mass exodus into safe havens – NOT into emerging markets.

While emerging market Asia and South America is somewhat insulated from eurozone fiscal problems. On the other hand, they remain vulnerable to an economic slowdown in China and to rising inflation. Emerging market central banks have avoided making significant interest rate hikes (hence, rising bond prices) – for fear of inviting further capital inflow and stoking currency appreciation – and the result has been rising price inflation. You can see from the chart above that the darkest areas (symbolizing higher inflation) are all located in emerging economic regions. While high inflation is not inherently problematic, it is not difficult to conceive of a downward spiral into hyperinflation. Again, a sudden bout of monetary instability would send investors rushing to the exits.

While most analysts (myself included) remain bullish on emerging markets over the long-term, many are laying off in the short-term. “RBC emerging market strategist Nick Chamie says his team has recommended ‘defensive posturing’ to clients since May 5 and isn’t recommending new bullish emerging currency bets right now….HSBC said Thursday that it isn’t recommending outright short positions on emerging market currencies to clients but suggested a more ‘cautious’ and selective approach in making currency bets.” This phenomenon will be exacerbated by the fact that market activity typically slows down in the summer chart above courtesy of Forex Magnates) as traders go on vacation. With less liquidity and an inability to constantly monitor one’s portfolio, traders will be loathe to take on risky positions.

NO QE3: What are the Implications for the Dollar?
by Adam Kritzer
25 Jun 2011 at 7:28am

The verdict is nearly in; there will be no QE3. The second round of quantitative easing (?QE2?) will expire at the end of this month, and while it will not be unwound for quite some time, the Fed has indicated that it will not be followed by yet another round. The question on the minds of forex traders, of course, is what does this mean for the Dollar?

In his most recent press conference, Ben Bernanke, himself, indicated that QE3 was unlikely. According to a survey conducted by Bloomberg News, the majority of FX analysts (65%) believe him. Simply, the circumstances don?t support further easing. To be sure, the unemployment rate remains high, and the economy is teetering on the verge of double-dip recession. However, the last two rounds did little to address either of these problems, and companies have hoarded cash rather than investing in new plant and workers.

Interest rates are still hovering around record lows, and there isn?t anything to be gained from trying to lower them further. Besides, given that inflation is now above 3% ? due to an explosion in good and energy prices ? QE3 would simply be too risky. Economist Ken Goldstein summarized the situation as follows: “We will come to the end of QE2 and largely we mark about how little happened when it ended and that?s also an argument about why there may not be persuasive argument to do a QE3.”

On the other hand, there are some analysts who think that QE3 is inevitable (29%). PIMCO?s Bill Gross, manager of the world?s biggest bond fund, recently indicated that, ?Next Jackson Hole in August will likely hint at QE3/interest rate caps.? (Personally, I think that he?s probably just bitter that his forecast of a decline in Treasury Bond prices hasn?t materialized). One columnist wrote that the Fed?s arm will be twisted by the ongoing collapse of the housing market, while others have argued that the recent decline in the S&P 500 will spur the Fed into action. Most of us, however, believe that the Fed will adopt a wait-and-see approach before ultimately conceding that more easing is necessary.

For now at least, then, the prevailing assumption is that there will not be a QE3. As for how forex markets have digested this news, they have taken it in stride. The Dollar is now holding its value, and as I wrote in a previous post, it may even have bottomed out. Of course, it doesn?t hurt that the Euro is being punished by another flare-up in the sovereign debt crisis and investors are getting nervous about bubbles in emerging market currencies, all of which provide support for the dollar.

The fact that QE2 will soon end without having triggered financial apocalypse or hyperinflation ? as some cassandras initially predicted ? is something that is worth nothing. Of course, the proceeds of QE1 and QE2 will be recycled indefinitely into the markets, and forex investors can?t completely put quantitative easing behind them. Still, that there won’t be any more additional cash injected into commodities markets and emerging economy asset markets means that one of the main sources of downward pressure on the dollar has been eliminated.

Ironically, it is possible that the unveiling of QE3 could actually cause the dollar to rally. The reason is that there is still a tremendous amount of uncertainty in the markets, which provides the dollar with some safe haven demand. If the Fed were to concede that all is not well on the economic front and respond by more money printing, it could drive some safe haven flows into the US, even to the extent that it would overwhelm outflows driven by concerns over inflation.

Personally, I think the dollar will continue to hold its value, and perhaps even appreciate slightly in the near-term, as forex markets dither over the way forward.

http://www.forexblog.org/2011/06/has-the-us-dollar-hit-bottom.html Swiss Franc is the Only Safe Haven Currency
by Adam Kritzer
23 Jun 2011 at 10:11am

According to conventional market wisdom, there are three safe haven currencies: the Swiss Franc, Japanese Yen, and US Dollar. It is to these currencies that investors flock whenever there is a crisis, or merely an outbreak of uncertainty, and for much of the period following the collapse of Lehman Brothers, the three were closely correlated. As you can see from the chart below, however, one of these currencies has begun to distinguish itself from the other two, leading some to argue that there is now only one true safe haven currency: the Swiss Franc.

What’s not to like about the Franc? It boasts a strong economy, low inflation, and low unemployment. Unlike the US and Japan, Switzerland is not plagued by a high national debt and perennial budget deficits. Its monetary policy has been extremely conservative: no quantitative easing, asset-purchases, or any other money printing programs with euphemistic names.

Ironically, the only thing that makes investors nervous about the franc is that it has already risen so much. Remember when it reached the milestone of parity against the dollar in 2010? Since then, it has appreciated by an additional 20%, and seems to breach a new record on an almost weekly basis. The same goes for the CHF/EUR and CHF/JPY. The President of Switzerland’s export association is expecting further gains: “Parity is a realistic scenario. Given the indebtedness of the eurozone and the strong attraction of the franc, the euro is likely to continue to lose value.”

Given that Swiss exports have surged in spite of (or even because of) the rising Franc, however, he has very little to worry about at the moment. As you can see fromt he graphic below (courtesy of the Financial Times), the balance of trade continues to expand, and has exploded in a handful of key sectors. To be sure, economists expect that this situation will eventually correct itself and are already moving to revise downward 2011 and 2012 GDP growth estimates. Then again, they made the same erroneous predictions in 2010.

The main variable in the Swiss Franc is the Swiss National Bank (SNB). Having booked a loss of CHF 20 Billion from failed intervention in 2010, the SNB is not in a position to make the same mistake again. In fact, SNB President Philipp Hildebrand has not even stooped to verbal intervention this time around, undoubtedly cognizant of the fact that he has very little credibility in forex markets.

At the same time, the SNB is not in any hurry to raise interest rates, lest it stoke further speculative interest in the Franc. Its June meeting came and went without any indication of when it might tighten. Interest rate futures currently reflect an expectation that the first rate hike won’t come until March 2012. Thus, the downside of holding the Franc is that it will continue to pay a negative real interest rate. The only upside, then, is the possibility of further appreciation. Fortunately, the SNB is unlikely to stop the Franc from rising, since it serves the same monetary end as higher interest rates. In other words, a more valuable Franc serves as a direct check on inflation because it lowers the cost of commodity imports and should (eventually) soften demand for Swiss exports.

It is possible that the Swiss Franc will suffer a correction at some point, if only because it rose by such a large margin in such a short period of time. On the other hand, given that its economy has proved its ability to withstand the Franc’s appreciation, it’s no wonder that investors continue to bet on its rise.

Is it Possible to Trade Forex Part-time?
by Adam Kritzer
22 Jun 2011 at 10:17am

This week, I came across an article in the San Francisco Gate (which, incidentally, has really ramped up its forex coverage over the last year) that addressed this very topic. Given that part-time forex traders probably outnumber those that practice the craft full-time, such an article was long overdue.

In sum, the author advises part-time traders to concentrate their trading during the busiest times of the day, or failing that, to simply trade the most active currency pairs during the period of the day that one happens to have time to trade. For example, if you wish to trade the USD/EUR but only have a limited amount of time to do so, you are advised to trade the opening of the New York and/or London sessions, at 8AM EST and 3AM EST, respectively. Alternatively, if you only have time to trade from midnight to 2am, for example, you are advised to trade currency pairs in which the quote currency is the Yen, because during that time the Tokyo session is “in full swing.”

Alas, this kind of strategy is based on a very dubious assumption, which is that you should aim to trade the currency pairs which are both the most liquid and most volatile (ignore the contradiction here), because this will yield the most profits. In other words, it’s easy to capture profits when trading pairs that tend to bounce around a lot and which are cheap and easy to buy and sell. Right?

If you read the Forex Blog with any regularity and are ware that my bend is towards fundamental analysis, it’s probably already obvious to you that I don’t think this is necessarily the case. Consider that forex is a zero-sum game. In other words, on average, 50% of traders win and 50% lose. [When you account for trading costs (i.e. spreads), its probably closer to 30% win and 70% lose, but let's ignore this for the sake of argument]. Thus, the way I see it, a trader that enters the market during the busiest times has the same chance of winning (~50%) as a different trader that enters the market during the least busy time of day. Either way you cut it, someone has to win and someone has to lose, and no amount of liquidity or volatility can rectify this situation.

Thus, my advice for part-time traders is to forget trading altogether. If you don’t have the time to constantly monitor the market, pore over charts, and develop technical strategy, the odds of winning are pretty low. On the other hand, why not shift your focus from trading to investing? Trading is difficult under the best of circumstances and even more difficult when you don’t have enough time to make a real commitment.

The only way around this is to shift your time horizon from minutes to days – or even weeks. This way, it won’t matter when you have time to trade. Spreads might be marginally higher (as evidenced in the spikes in he chart above, which shows how spreads fluctuate over time) for the USD/EUR at midnight than at 8am, but if you’re planning on holding the pair for more than 10 seconds (and your target profit is greater than 15 pips), this is basically irrelevant.

This way, you also don’t have to worry about carefully planning your entry and exit into positions. Entering a swing trade with a targeted profit of 500pips is probably just as good at 4am as it is at 7am, all else being equal. While this doesn’t necessarily increase the odds of success (above 50%), at least it gives you a great deal more flexibility in being a part-time trader.

Japanese Yen In ?No Man?s Land?
by Adam Kritzer
20 Jun 2011 at 8:52am

This, according to a hedge fund manager that has decided to cancel all of his fund’s bearish bets on the Japanese Yen. The reason: the yen is rising, and it’s unclear when – or even if – the government will intervene to push it back down. Even though the yen’s strength is fundamentally illogical, it seems that investors are growing increasingly wary of betting against it.

As I pointed out in my previous post on the Yen (“Japanese Yen Strength is Illogical, but Does it Matter?“), the yen has actually fallen over the last twelve months, on a correlation weighted basis (though to be fair, it has staged a pretty impressive comeback since the beginning of April). Unfortunately, investors mainly care about how it is performing against a handful of key currencies, namely the US Dollar. Simply, the yen continues to rise against the dollar, and it is unclear when it will stop.

Japanese government analysis has indeed confirmed that “speculators” are behind the strong yen, as the alleged wide-scale repatriation of yen by Japanese insurance companies has yet to materialize. Of course, there isn’t really much doubt: Japan’s economy is contracting, due to decrease in output spurred by the tsunami. In May, it recorded its second largest monthly trade deficit ever.

Meanwhile, interest rates and bond yields are pathetically low, and the Bank of Japan is being urged to expand its asset buying program, which would theoretically result in a devaluation of the yen. As  a result, retail Japanese forex traders (nicknamed “Mrs. Watanabes“) have resumed shorting the Yen as part of a carry trade strategy.

Alas, speculators either don’t share their pessimism or are running out of patience. While everyone continues to assume that the BOJ will intervene if the Yen rises to 80 against the dollar, no one can be sure whether the line in the sand might not be 78 or even 75. At this point, intervention seems to hinge more on politics than on economics, which means predicting it is beyond the scope of this post. In other words, “There is too much uncertainty and volatility in markets right now to make that yen trade appealing.” And sure enough, the most recent Commitments of Traders data shows that speculators have been re-building their yen long positions over the last month.

In the end, the speculators are probably right. The Bank of Japan has intervened twice over the last twelve months, and the impact has always been short-lived. Besides, given that many speculators still remain committed to shorting the yen, it remains extraordinarily vulnerable to the kind of short squeeze that sent it soaring 5% in a single session en route to the record high it touched in March.

I’m personally still bearish on the yen, but I also think it’s too risky to short it against the dollar, which seems to be declining for its own reasons. As you can see from the chart below, the yen has fallen against virtually every other major currency. Yen shorters, then, might be wise to avoid the dollar altogether and focus instead on any number of other currencies.

http://www.bloomberg.com/news/2011-06-17/japan-recovery-means-boj-can-avoid-adding-stimulus-muto-says.html Forex Volatility Continues Rising
by Adam Kritzer
17 Jun 2011 at 9:38am

This week witnessed another flareup in the eurozone sovereign debt crisis. As a result, volatility in the EUR/USD pair surged, by some measures to a record high. Even though the Euro rallied yesterday and today, this suggests that investors remain nervous, and that going forward, the euro could embark on a steep decline.

There are a couple of forex volatility indexes. The JP Morgan G7 Volatility Index is based on the implied volatility in 3-month currency options and is one of the broadest measures of forex volatility. As you can see from the chart above, the index is closing in on year-to-date high (excluding the spike in March caused by the Japanese tsunami), and is generally entrenched in an upward trend. Barring day-to-day spikes, however, it will take months to confirm the direction of this trend.

For specific volatility measurements, there is no better source of data than Mataf.net (whose founder, Arnaud Jeulin, I interviewed only last month). Here, you can find data on more than 30 currency pairs, charted across multiple time periods. You can see for the EUR/USD pair in particular that volatility is now at the highest point in 2011 and is closing in on a two-year high.

Meanwhile, the so-called risk-reversal rate for Euro currency options touched 3.1, which is greater than the peak of the credit crisis. This indicator represents a proxy for investor concerns that the Euro will collapse suddenly, and its high level suggests that this is indeed a growing concern. In addition, implied volatility in options contracts has jumped dramatically over the last week, which confirms that investors expect the euro to move dramatically over the next month.

What does all of this mean? In a nutshell, it shows that panic is rising in the forex markets. Last month, I used this notion as a basis for arguing that the dollar safe-haven trade will make a come-back. This would still seem to be the case, and should also benefit the Swiss Franc, which is nearing an all-time high against the euro. Naturally, it also implies that forex investors remain extremely concerned about a continued decline in the euro, and are rushing to hedge their exposure and/or close out long positions altogether.

Mataf.net suggests that this could make the EUR/USD an interesting pair to trade, since large swings in either direction will necessarily create opportunities for traders. While I have no opinion on such indiscriminate trading [I prefer to make directional bets based on fundamentals], I must nonetheless acknowledge the logic of such a strategy.

http://www.forexblog.org/2011/05/interview-with-arnaud-jeulin-of-mataf-net-try-a-lot-of-strategies.html Euro Nears Breaking Point
by Adam Kritzer
16 Jun 2011 at 8:33am

It’s deja vu all over again in the forex markets as another twist in the sovereign debt crisis has sent the euro tumbling by the greatest margin in nearly a year. It was only last month that I posted “The Euro (Still) has a Greek Problem,” and yet, forex markets are once again reacting to the possibility of a Greek default as thought it were a new development. At the very least, investors finally seem to be acknowledging the inevitable.

There have been several factors at work in this latest episode. On Monday, S&P downgraded its credit rating for Greece to CCC, following on a similar move by Moody’s. That means that Greece’s sovereign credit rating is now the lowest in the world, behind such eminent economies as Grenada and Ecuador. While the move was hardly noteworthy in itself, it represents one more straw on the camel’s back.

Greece’s government is increasingly unstable, and Prime Minister George Papandreou has become so desperate that he has suggested forming an alliance with Greece’s most powerful opposition party. Meanwhile, violent riots outside Greek Parliament have reportedly become a daily occurrence, as the Greek populace has proven unwilling to accept wage cuts and tax increases.

As if that weren’t enough, there is tremendous uncertainty surrounding the next stage of the Greek bailout. No one can agree on what amount to give and what should be stipulated in return. Some parties think that private investors should be involved in the bailout by taking a “haircut” on the bonds that they own. Some members of the eurozone are balking about contributing any funds at all, wary of justifying it to their own citizens and that it is merely forestalling the inevitable.

I think the NYTimes offered the best summary: “Funding fatigue is growing in the north European creditor countries, especially Germany, the Netherlands, Finland and Austria, just as austerity fatigue is mounting in Greece.” When you consider that Greek interest rates and credit default swap spreads have surged to record highs, it seems that default is really inevitable. If the IMF and European Union are so determined, they can push off default until 2013. Still, default now or default then is still default.

At this point, then, the only real question is what happens when Greece defaults. Will it be forced to leave the Eurozone? Will that push the rest of the Eurozone fringe closer towards default? Will the Euro collapse and cease to exist as a currency? What will happen then?

Unfortunately, I think the answer to all of these questions is yes. At the very least, Greece will be forced out of the eurozone. Bondholders will push interest rates in Ireland, Spain, and Portugal up to double-digit levels, trapping them in the same cycle in which Greece is currently ensnared. Given the exposure of French and German banks to the sovereign debt of financially troubled eurozone members, they will also require state bailouts, and so on.

In a recent op-ed published in The Financial Times, celebrity economies Nouriel Roubini argued that the only way to avoid a complete eurozone meltdown is if the euro depreciates rapidly “to restore competitiveness to the periphery” or if the European Union is able to rapidly achieve complete fiscal and economic union. Roubini argues that the former is difficult because of the ECB’s hawkishness, while the latter is precluded by political hurdles that remain too formidable to overcome.

As Greece inches ever closer to default, the markets will increasingly become gripped by utter uncertainty over the questions that I posed above. Central Banks will stop accumulating euro-denominated assets, and investment funds will similarly shun Europe. (In fact, there is already evidence that this is happening). While European interest rates are attractive relative to the rest of the G4, they are hardly enough to compensate investors for this uncertainty. And when the markets come to terms with this, the euro might finally reach its breaking point.

S&P 500 Decouples from Euro?
by Adam Kritzer
14 Jun 2011 at 9:58am

While I have written quite about forex correlations in recent posts, the focus has primarily been on correlations that exist between currencies. In this post, I would like to address a correlation that exists between currencies and other forex markets- specifically the relationship between the Euro and US stocks.

If you look at the chart above, you can see that an unmistakable correlation exists between the S&P500 and the EUR/USD that stretches back at least six months. Generally speaking, when the EURUSD has risen, so has the S&P 500, and vice versa. In fact, this correlation is so airtight that one analyst recently discovered that the two financial vehicles often reach intra-day highs and lows within minutes of one another!

Why is this the case? In a nutshell, it is because the Euro – especially relative to the dollar – is a proxy for risk appetite. The same is necessarily true for US stocks. When investors are confident in the strength of the global economic recovery and the possibility of crisis is distant, the euro will rise. This has nothing to do with fundamentals in Europe, which are probably at least as bad as they are in the US. Of course, it may be connected with dollar weakness, since it is arguably the case that quantitative easing has both depressed the dollar and buoyed US stocks.

As I intimated in the title of this post, however, the S&P recently decoupled from the euro. Since the beginning of June, US equities have declined sharply, to the extent that they have given back most of their gains in the year-to-date. The EUR/USD, meanwhile, continued rising all the way until last week. While this has happened on a couple previous occasions, this was perhaps the sharpest break between the two.

I’m personally at a loss to explain why this happened. It has been conjectured that the driving force behind the correlation is algorithmic trading, and that hence, it must also represent the source of the break. In other words, high-frequency traders – which account for an ever-increasing proportion of forex volume – tweaked their trading algorithms so as not to buy the S&P 500 when the EURUSD rises, and vice versa.

It’s probably also the case that S&P 500 was falling for endogenous reasons- specifically a decline in GDP growth and earnings expectations which need not necessarily reflect itself in a stronger euro. In fact, in a normal functioning market, you would expect an inverse correlation; strong US economic fundamentals should translate into both a strong dollar and rising stocks. Could it be that worsening fundamentals are manifesting themselves in the form of a weak dollar and weak stocks?

Alas, the correlation has re-established itself over the last week, which means this is largely a moot issue. At the very least, it’s still worth being aware of, both insofar as it remains intact and in the event that it breaks down again.

 

DailyFX - Forex Market News
Forex Market News

USD Index Carving Top In May, AUD Eyes November Lows
by David Song, Currency Analyst
18 May 2012 at 10:30am
The greenback continued to gain ground ahead of the G8 Summit, with the Dow Jones-FXCM U.S. Dollar Index climbing to a fresh yearly high of 10,154, and the reserve currency should appreciate further as we don’t expect to see any major developments over the weekend.

Guest Commentary: Gold & Silver Daily Outlook 05.18.2012
by Lior Cohen, Energy Analyst for Trading NRG,
18 May 2012 at 8:32am
Gold and silver took a sharp turn and sharply rose yesterday. Gold recorded the sharpest single day gain this year (UTD).

Euro Tests For Support Ahead Of G8 Summit, Sterling To Lag Behind
by David Song, Currency Analyst
18 May 2012 at 7:45am
Market sentiment firmed up ahead of the G8 meeting as the EU talked down the risk for a Greek exit, and the rebound in risk-taking behavior may gather pace in the days ahead as European policy makers increased their pledged to bolster the euro-area.

Commodity Prices Have Scope to Rise into the End of Trading Week
by Ilya Spivak, Currency Strategist
18 May 2012 at 2:56am
Crude oil and copper may rise amid profit-taking on risk aversion bets while gold and silver ride QE3 hopes and growing fears of Eurozone instability may spread.

Friday?s Session Kicks Off in Apocalyptic Fashion; Where is the Bottom?
by Joel Kruger, Technical Strategist
17 May 2012 at 11:52pm
Investors have panicked as risk correlated assets tumble. As of yet, there isn't any sign of light at the end of the tunnel....

Dollar, Yen Aim Higher as Risk Appetite Continues to Evaporate
by Ilya Spivak, Currency Strategist
17 May 2012 at 11:44pm
The US Dollar and Japanese Yen aim to extend gains into the end of the trading week as evaporating risk appetite stokes demand for the go-to haven currencies.

Guest Commentary: The Perfect Setup Slipped Away? Another One Will Come
by Yohay Elam, Forex Crunch,
17 May 2012 at 8:00pm
A wise trader carefully plans his trades, and often makes an extra effort and "stalks" the perfect entry. Too often, when the time to enter the trade arrives, the tables turn and the opportunity isn't there anymore.

USD Remains Overbought, JPY At Risk As Intervention Threats Resurface
by David Song, Currency Analyst
17 May 2012 at 12:55pm
The greenback struggled to hold its ground on Thursday, with the Dow Jones-FXCM U.S. Dollar Index falling back from a fresh yearly high of 10,141, but the weakness may be short-lived as market sentiment remains frail.

Yen Top Performer as Aussie, Euro Stabilize; Sterling Tumble Continues
by Christopher Vecchio, Currency Analyst
17 May 2012 at 9:05am
The US Dollar has been particularly strong the past two weeks, necessitating a pullback to relieve extreme technical conditions. As two of the hardest hit majors, the Australian Dollar and the Euro, consolidate against the US Dollar, the Japanese Yen has rallied on the back of strong first quarter growth data.

Euro At Risk On Spanish Bank Downgrades, Pound Searches For Support
by David Song, Currency Analyst
17 May 2012 at 7:35am
Market sentiment weakened further on Thursday amid the ongoing turmoil in the euro-area, and the flight to safety may gather pace going into the end of the week as European policy makers fail to stem the risk for contagion.

Guest Commentary: Gold & Silver Daily Outlook 05.17.2012
by Lior Cohen, Energy Analyst for Trading NRG,
17 May 2012 at 7:15am
Gold and silver tumbled down again during yesterday along with other commodities prices. On today's agenda: U.S. Jobless Claims Update, Philly and Fed Manufacturing Survey.

Crude Oil, Gold May Recover as Greece Eurozone Exit Fears Digest
by Ilya Spivak, Currency Strategist
17 May 2012 at 2:46am
Commodity prices have scope to recover amid profit-taking as markets digest the latest batch of negative Greece-linked news flow.

Dollar, Yen Vulnerable as Markets Absorb Greece-Linked News Flow
by Ilya Spivak, Currency Strategist
17 May 2012 at 12:33am
The safe-haven US Dollar and Japanese declined overnight and may have scope for a deeper pullback as markets digest negative Greece-linked news flow.

European Central Bank and European Leadership Need to Step Up Now
by Joel Kruger, Technical Strategist
16 May 2012 at 11:43pm
While a Greek exit alone from the Euro would be a manageable setback, the impact from such an exit would be catastrophic....

USDCAD: Trading Canada’s Consumer Price Report
by David Song, Currency Analyst
16 May 2012 at 11:00pm
Canada’s consumer price index is widely expected to hold steady from the previous month, but a divergence from market expectations may spark increased volatility in the USDCAD as currency traders weigh the outlook for monetary policy.

 

World business news - CNNMoney.com
From CNN and Money magazine, CNNMoney.com combines business news and in-depth market analysis with practical advice and answers to personal finance questions.


MUTED START FOR FACEBOOK
18 May 2012 at 10:12am
Facebook's stock market debut is finally here -- and investors jumped on the breathlessly hyped IPO, sending shares up almost 11% at the start of trade.

Europe fears pressure world markets
18 May 2012 at 10:38am
European markets were mixed Friday as investors remained anxious about Spanish and Greek banks, while Asian stocks sold off sharply amid worries of a further slowdown in China.

U.S. stocks: Europe fears vs. Facebook anticipation
18 May 2012 at 10:45am
U.S. investors continue to worry about Europe's sovereign debt issues, with stocks opening little changed ahead of Facebook's debut on the Nasdaq.

Facebook: 70 mutual funds already have a stake
18 May 2012 at 10:06am
Whether you do or don't like Facebook, you may already own a piece of the social media site: over the past year, nearly 70 mutual funds have snapped up pre-IPO shares on private markets.
Dear Greece, be careful what you wish for
18 May 2012 at 7:35am
What you are going through has made it clear that austerity is not an easy solution.You, the Greek people now have a chance to do something I suspect millions in Europe would dearly love to do - vote on whether to leave the euro
Spain's government to urge calm
18 May 2012 at 6:34am
The government is expected to urge calm in the wake of bank downgrades and worries about the health of the overall banking system.

Moody's downgrades Spanish banks
18 May 2012 at 3:32am
Rating agency Moody's downgraded 16 Spanish banks on Thursday, the latest sign of distress in Europe.

No 'Facebook-mania' overseas - The Buzz
17 May 2012 at 11:39am
Facebook. Facebook. Facebook. Facebook.

Tokyo firm sinks $100 million in Pinterest
17 May 2012 at 2:43pm
Hot social network Pinterest just landed a sizable cash infusion: The company raised $100 million in a financing round by e-commerce giant Rakuten. Existing investors Andreessen Horowitz, Bessemer Venture Partners and FirstMark Capital also participated in the round.

New U.S. tariffs on Chinese solar panels
17 May 2012 at 5:50pm
The U.S. Commerce Department announced stiff tariffs on Chinese-made solar panels Thursday, a move critics said could raise costs for consumers and further inflame trade tensions with Beijing.

World's largest economies
25 Apr 2012 at 11:18am


Obama may tap Strategic Petroleum Reserve
17 May 2012 at 3:38pm
Despite the recent fall in oil prices, analysts say President Obama may tap the Strategic Petroleum Reserve as sanctions on Iran take hold.

Japan's economic growth nearly doubles U.S.
17 May 2012 at 1:07pm
Japan's gross domestic product grew at nearly double the U.S. rate for the first quarter, an unexpectedly strong sign of recovery in the wake of last year's devastating earthquake and tsunami.Japanese GDP grew 4.1% annual rate in the first quarter, showing post-tsunami rebound. That's nearly doubled the U.S. annual rate of 2.2%.

Nissan wants Toyota's crown
17 May 2012 at 12:01pm


Facebook IPO: The art of pricing the right pop
17 May 2012 at 10:09am
With seemingly unceasing demand for Facebook's initial public offering, the banks that are in charge of selling the stock to investors might seem to have the easiest job in the world.